FLIR Systems Reports Record Fourth Quarter and 1998 Financial Results
;PORTLAND, Ore.---FLIR Systems Inc. Wednesday announced that net earnings for the fourth quarter ended Dec. 31, 1998, grew to a record $8.0 million, or 65 cents per diluted share on 12.3 million diluted shares outstanding. ;This compares with net earnings before charges associated with the acquisition of AGEMA Infrared Systems that was effective on Dec. 1, 1997, of $2.9 million, or 39 cents per diluted share on 7.4 million diluted shares outstanding. Revenue for the fourth quarter of 1998 increased 58 percent to a record $50.8 million from $32.1 million in 1997. ;Revenue from sales to commercial customers for the 1998 fourth quarter increased 80 percent to $28.8 million compared with $15.9 million a year earlier. Revenue from sales to government customers increased 36 percent to $22.0 million from $16.2 million a year earlier. ;For the 12 months ended Dec. 31, 1998, net earnings increased 137 percent to a record $16.3 million, or $1.45 per diluted share on 11.2 million diluted shares outstanding. Before charges, net earnings for 1997 were $6.9 million, or $1.10 per diluted share on 6.2 million diluted shares outstanding. Including the charges, the net loss for 1997 was $30.6 million, or $5.23 per diluted share. ;Revenue for 1998 increased 69 percent to a record $154.8 million, reflecting a 117 percent increase in sales to commercial customers and a 26 percent gain in sales to government customers. This compares with revenue for 1997 of $91.8 million. ;FSI Chairman Robert P. Daltry said that increased shipments of the company's uncooled thermal imaging system, the AGEMA 570, led the increase in commercial revenue for the 1998 fourth quarter and year. "Demand for the AGEMA 570 continues to grow in both our domestic and international markets,'' Daltry said. ;Daltry attributed the growth in government revenue to continued strong deliveries of FLIR's SAFIRE airborne night vision system, particularly to international customers; increased deliveries of the company's ground-based perimeter security system, the AGEMA 1000, primarily to the U.S. Air Force; and the ramp-up of shipments of FLIR's newest airborne system, the Star SAFIRE, primarily to the U.S. Marine Corps. ;"During the fourth quarter, we made the first shipments of our newest ground-based imaging system featuring uncooled technology, the ThermoVision Sentry. Demand has been very strong for this product and we expect production to ramp up quickly in the next few months,'' Daltry added. ;Reflecting increased shipments of the AGEMA 570, greater production efficiencies associated with higher revenue, and the increase in international sales to 57.5 percent of revenue from 46.1 percent a year earlier, gross margin for the 1998 fourth quarter was 59.7 percent compared with 53.8 percent before the acquisition-related charges for the fourth quarter of 1997. ;Spending on research and development increased to $6.0 million, or about 12 percent of revenue, from $3.3 million, or about 10 percent of revenue, for the year-earlier fourth quarter. ;"New product development is the key to FLIR's continued growth,'' commented FSI President and Chief Executive Officer Ken Stringer. "Our commitment to new product development, innovation and product enhancement is stronger than ever.'' ;Stringer also reported that improved expense management and better economies of scale led to a decline in selling, general and administrative expenses to 24.9 percent for the 1998 fourth quarter from 30.1 percent a year earlier. The company's operating margin also increased to a record 23 percent for the 1998 fourth quarter. ;Said Stringer: "As we anticipated, the acquisition and integration of AGEMA Infrared Systems strengthened our company in every important dimension, and positioned FLIR Systems as a global leader in commercial thermal imaging systems. ;"We hope soon to complete the previously announced merger with Inframetrics Inc., which will further strengthen our position in the marketplace. We currently expect 1999 to be another strong year for FLIR Systems,'' Stringer added. ;FLIR Systems is a world leader in the design, manufacturing and marketing of thermal imaging and broadcast camera systems for a wide variety of commercial and government applications including condition monitoring, research and development, manufacturing process control, airborne observation and broadcast, search and rescue, drug interdiction, surveillance and reconnaissance, navigation safety, border and maritime patrol, environmental monitoring and ground-based security.
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FLIR Systems Reports Record Fourth Quarter and 1998 Financial Results
